Airbus 2015 Annual Report Download - page 250

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 68 l
Notes to the IFRSConsolidatedFinancialStatements
2.7 Capital Structure and Financial Instruments
The contractual maturities of the Group’s financial liabilities, based on undiscounted cash flows and including interest payments,
if applicable, are as follows:
(In € million)
Carrying
amount Contractual cash flows < 1 year 1 year- 2years 2years- 3years 3years- 4years 4years- 5years > 5years
31December 2015        
Non-derivative financial liabilities (22,074) (23,355) (15,311) (832) (1,113) (408) (762) (4,929)
Derivative financial liabilities (10,587) (12,690) (3,973) (2,747) (3,518) (1,898) (506) (48)
Total (32,661) (36,045) (19,284) (3,579) (4,631) (2,306) (1,268) (4,977)
31December 2014        
Non-derivative financial liabilities (18,905) (20,008) (11,625) (1,786) (586) (956) (353) (4,702)
Derivative financial liabilities (5,503) (6,976) (2,293) (1,747) (1,413) (895) (543) (85)
Total (24,408) (26,984) (13,918) (3,533) (1,999) (1,851) (896) (4,787)
Non-derivative financial liabilities included in the table above comprise financing liabilities and finance lease liabilities as presented
in the tables of Note35.2 “Carrying amounts and fair values of financial instruments”. Due to their specific nature, namely their
risk-sharing features and uncertainty about the repayment dates, the European Governments refundable advances, which amount
to € 7,286million at 31December 2015 (€ 6,528 million at 31December 2014) are not included.
Credit Risk
The Group is exposed to credit risk to the extent of
non-performance by either its customers (e.g. airlines) or its
counterparts with regard to financial instruments or issuers of
financial instruments for gross cash investments. However, the
Group has policies in place to avoid concentrations of credit
risk and to ensure that credit risk is limited.
As far as central treasury activities are concerned, credit risk
resulting from financial instruments is managed on Group level.
In order to ensure sufficient diversification, a credit limit system
is used.
The Group monitors the performance of the individual financial
instruments and the impact of the market developments on
their performance and takes appropriate action on foreseeable
adverse development based on pre-defined procedures and
escalation levels.
Sales of products and services are made to customers after
having conducted appropriate internal credit risk assessment.
In order to support sales, primarily at Airbus and ATR, the Group
may agree to participate in the financing of customers, on a
case-by-case basis, directly or through guarantees provided to
third parties. In determining the amount and terms of the financing
transaction, Airbus and ATR take into account the airline’s credit
rating and economic factors reflecting the relevant financial
market conditions, together with appropriate assumptions as
to the anticipated future value of the financed asset.
The booked amount of financial assets represents the maximum
credit exposure. The credit quality of financial assets can be
assessed by reference to external credit rating (if available)
or internal assessment of customers’ (such as airlines’)
creditworthiness by way of internal risk pricing methods.
The following table breaks down the carrying amounts of the Group’s non-cash loans and receivables including finance leases,
separately showing those that are impaired, renegotiated or past due:
(In € million) 2015 2014
Receivables, neither past due nor impaired 7,79 5 6,592
Not past due following negotiations and not impaired 139 94
Receivables impaired individually 170 405
Receivables not impaired and past due ≤ 3months 1,062 1,173
Receivables not impaired and past due > 3 and ≤ 6months 432 271
Receivables not impaired and past due > 6 and ≤ 9months 157 95
Receivables not impaired and past due > 9 and ≤ 12months 294 141
Receivables not impaired and past due > 12months 484 387
Total 10,533 9,158
31December
The management believes that the unimpaired amounts that are past due are still collectible in full, based on historic payment
behaviour and analysis of customer credit risk, including underlying customers’ credit ratings if they are available.
At year-end there was no indication that any financial assets carried at fair value were impaired.
Financial Statements 2015
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QRegistration Document 2015
Annual Report 2015 Financial Statements 2015